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Servus, I'm looking at these right now as well, as a potential future purchase. I read in your reply to the other comment, you see 40%+ upside with DCF, may I ask with what you discount? Would be interested to know, many do it with T-Bill interest or AAA corporate bonds, Buffett takes his own desired yield.
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Hey, if I use DCF then it's based on earnings per share compared to an average return of 8%.
Based on the 2022 EPS of 3$, with 2% growth over the next 5 years and 1% annual growth thereafter, ~$45 would currently be the fair value. So 50% upside.
To be honest, I rarely use DCF. I usually just look at the P/E ratio and the dividend yield compared to the last 5-10 years to assess whether I like the valuation of a stock.
Based on the 2022 EPS of 3$, with 2% growth over the next 5 years and 1% annual growth thereafter, ~$45 would currently be the fair value. So 50% upside.
To be honest, I rarely use DCF. I usually just look at the P/E ratio and the dividend yield compared to the last 5-10 years to assess whether I like the valuation of a stock.
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@StupidRich Great, thanks for the quick reply 😁
The main thing is not to buy too expensive 🤌🏻
The main thing is not to buy too expensive 🤌🏻
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@Divmann Sometimes works better and sometimes worse 😂💪🏼
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@StupidRich That's what you say 😂
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